DUBLIN (Reuters) – Ireland will accept a revised version of the global trade tax deal if its concerns are addressed, Finance Minister Pascal Donohue said on Thursday.
The agreement was signed in July by the Organization for Economic Co-operation and Development (OECD), which sets a corporate tax rate of at least 15%. Ireland, where many multinational corporations sit because of the low tax rate, temporarily refuses to recognize the text, which has been adopted by more than 130 of the 139 countries involved in the negotiations.
Ireland believes the reference to a rate of “at least” 15% of the guarantees given to companies for decades in a long-term investment decision is questionable.
With only a 12.5% tax, Dublin has been able to seduce companies like Google, a subsidiary of Alphabet, Facebook or Apple. These multinationals now employ more than one in ten Irish citizens.
“If it can bring determination and stability, I think we will argue for Ireland’s entry into this agreement. Otherwise, where would we be,” Pascal told the Donohue TV station.
The official formal decision of the Irish government on the amended text of the tax transaction is expected at the OECD meeting on or before October 8, he added.
In addition to Ireland, other EU member states, Estonia and Hungary, oppose the agreement.
Several Irish ministers have said they are closely monitoring the reaction of the US Congress, which sees the deal, which is backed by Joe Aiden, as a deep division.
(Report by Padreik Halpin; French edition by Claude Chendzou, edited by Sophie Loot)
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